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Trade Specialization in the European Union and in Postcommunist European Countries

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  • Imre FertÅ
  • Karoly Attila Soós

Abstract

We describe the evolving pattern of European countries' trade using recently developed empirical procedures based on the classic Balassa index. The extent of trade specialization exhibits a declining trend; European countries have lost their comparative advantage in a number of product groups over time. The indices of specialization have also tended to converge. For particular product groups, the indices display greater variation. They are stable for product groups with comparative disadvantage, but product groups with weak-to-strong comparative advantage show significant variation over time. The results reinforce the finding of a general decrease in specialization but do not support the idea of self-reinforcing mechanisms, strongly emphasized in much of the endogenous growth and trade literature.

Suggested Citation

  • Imre FertÅ & Karoly Attila Soós, 2008. "Trade Specialization in the European Union and in Postcommunist European Countries," Eastern European Economics, Taylor & Francis Journals, vol. 46(3), pages 5-28, May.
    • Handle: RePEc:mes:eaeuec:v:46:y:2008:i:3:p:5-28
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    Cited by:

    1. Eva Ervani & Tri Widodo & Muhammad Edhie Purnawan, 2019. "Comparative Advantage and Trade Specialization of East Asian Countries: Do East Asian Countries Specialize on Product Groups with High Comparative Advantage?," International Business Research, Canadian Center of Science and Education, vol. 12(2), pages 113-134, February.
    2. Kardung, Maximilian & Drabik, Dušan, 2021. "Full speed ahead or floating around? Dynamics of selected circular bioeconomies in Europe," Ecological Economics, Elsevier, vol. 188(C).
    3. Aleksandra Parteka, 2013. "The evolving structure of Polish exports (1994−2010) – diversification of products and trade partners," Bank i Kredyt, Narodowy Bank Polski, vol. 44(5), pages 435-466.
    4. Silgoner, Maria & Steiner, Katharina & Wörz, Julia & Schitter, Christian, 2015. "Fishing in the same pool: Export strengths and competitiveness of China and Central, Eastern and Southeastern Europe at the EU-15 market," China Economic Review, Elsevier, vol. 32(C), pages 68-83.
    5. Hoang, Viet, 2019. "The Dynamics of Agricultural Intra-Industry Trade: A Comprehensive Case Study in Vietnam," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 74-82.
    6. Richa Khurana & D. K. Nauriyal, 2017. "Dynamics of Services Exports in India," Millennial Asia, , vol. 8(2), pages 178-193, October.
    7. Roesmara Donna, Duddy & Widodo, Tri & Adiningsih, Sri, 2017. "Dynamics of Trade Specialization in Middle East and North Africa (MENA)," MPRA Paper 77439, University Library of Munich, Germany.
    8. Camil-George G. STOENESCU, 2015. "The Evolution Of Romania’S Trade (2002 - 2014): Highlights And Structure," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 7, pages 527-535, April.
    9. Roesmara Donna, Duddy & Widodo, Tri & Adiningsih, Sri, 2017. "Pattern of Comparative Advantage in Middle East and North Africa (MENA)," MPRA Paper 78109, University Library of Munich, Germany.
    10. Nuno Cunha & Rosa Forte, 2017. "The Comparative Advantages in the Services Sector of Developing Economies," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(4), pages 1-24, December.
    11. Hoang, V. V. & Tran, K. T. & Tu, B. V. & Nguyen, V. N. & Nguyen, A. Q., 2017. "Agricultural Competitiveness of Vietnam by the RCA and the NRCA Indices, and Consistency of Competitiveness Indices," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(4).
    12. Viet V. Hoang, 2019. "Investigating the evolution of agricultural trade specialization in transition economies: A case study from Vietnam," The International Trade Journal, Taylor & Francis Journals, vol. 33(4), pages 361-378, July.
    13. Ervani, Eva & Widodo, Tri & M. Purnawan, Edhie, 2018. "East Asia’s Pattern of Export Specialization: Does Indonesia Compete with Japan, China, Hong Kong, Korea and Singapore?," MPRA Paper 85259, University Library of Munich, Germany.
    14. Marica DUMITRASCO, 2020. "Romania s position in the global value chains in comparison with European countries," Smart Cities International Conference (SCIC) Proceedings, Smart-EDU Hub, Faculty of Public Administration, National University of Political Studies & Public Administration, vol. 8, pages 9-25, November.
    15. Irina Marilena Ban, 2017. "Measuring trade specialization dynamics: the case of Romania and Bulgaria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(2), pages 229-248, May.

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